Interesting story here, just out......read into what you like, however would seem likely after more than 10 weeks of drilling and close to planned total depth, these Japan and Kuwait based major petroleum companies have asked for a further 6 weeks. Maybe another drill is planned...again using the extended reach capacilty, they have here.
Good and positive I think for a oil/gas discovery here.....700 meters away from to Cebu mainland based GGX leases.
Wednesday, January 16, 2008 Japex has 41 days more to do drilling activities By Edmund B. Sestoso
BAIS CITY, Negros Oriental -- The executive committee of the Protected Area Management Board (PAMB) under the Department of Environment and Natural Resources (DENR) has given Japan Exploration Corporation (Japex) another 41 days to do drilling activities in the continuance of their exploration activities.
The executive committee of PAMB, which includes officials from the provinces of Cebu, Negros Occidental, and Negros Oriental, had a meeting Tuesday morning at the Bais City Planning and Development Office.
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Discussions were extensively done with the regional environmental and energy officials defending the results of the findings and surveys made by their commissioned experts including that of the Bureau of Fisheries and Aquatic Resources (BFAR).
The meeting was presided by DENR provincial head Antonio Cabrido and among those present were Department of Energy (DOE) Regional Director Labios and the commissioned experts.
There were a total of 16 members of the executive committee and it turned out that only 10 of them were around including the presiding officer.
In a voting, majority of the members voted to favor in granting Japex another 41 days extension for their drilling activities in Tañon Strait.
It was Yutaka Tanaka of Japex, one of the company experts, who had requested PAMB to grant them for another extension because there were some technical problems in their exploration that has not led to the completion of their work.
The lone objector PAMB member is Mayor Hector "Tata" Villanueva who heavily relies on independent surveys conducted by the academe.
"I have reservation on the drilling, that's why I am opposing it" explained Mayor Villanueva in the same media interview here.
As early as 2002, based on the records of the company itself, it was found out that prior to the actual drilling, Japex has carried out satellite image analysis, fieldwork, sample analyses, sequence stratigraphic study, reprocessing geophysical data and 750km of new 2-D seismic data, acquisition since 2002.
The exploration effort resulted in the confirmation of hydrocarbon potential of the area, as well as the delineation of numerous prospects and leads.
Their research also showed that the key components of the petroleum system which are Rock: Coal & coaly shale layers are identified in Upper Oligocene to Lower Miocene deposits on the surface of Cebu Island. H.I. values exceed 200mgHC/gTOC in coal samples.
The same layers are deemed to extend into the central Tañon Strait. Reservoirs: Multiple layers of sandstone are expected in Upper Oligocene to Upper Miocene deposits. Middle to Upper Miocene limestone reef build-ups are also expected from seismic sections. Trap: Anticlinal and reefal traps are expected.
Satellite image analysis confirmed numerous slicks on the sea, thus oil samples were taken and analyzed.
In the year 2005, the DOE disregarded information on possible environmental destruction and has announced that the Tañon Strait is expected to yield about one billion barrels of oil under it.
The energy department had earlier said that one of the potential reserve, about 100 million barrels of oil can be recovered, which would be enough to answer the country's needs for one year, he said.
The DOE has about 15 service contracts for oil and gas exploration activities in different parts of the country.
Among them were those conducted by the Japex and Forum Exploration Inc. in the Tañon Strait.
The exploration activity or seismic surveys in the Tañon Strait were completed last January 15 of this year ending the 60 days period, which started November 15, 2007.
Another extension will took effect today right after PAMB gives its approval for extension.
It was also learned that both Japex and Forum have a seven-year contract with the national government to conduct exploration activities and interpret data from seismic surveys.
Japex sets aside about US$6 million, while Forum allotted US$3 million merely for the exploration projects.
Government records also showed that if there are oil and gas reserves of commercially viable amounts in the area, the two firms might enter into a 25-year contract with the national government to extract the resources.
Energy officials admitted that under such an agreement, private firms would get 40 percent of the net proceeds of the oil extraction project.
It was also learned that while Tañon Strait has been declared a protected area, the exploration activities did not require an environmental compliance certificate (ECC).
Instead, the projects were granted a certificate of non-coverage (CNC) by the Environmental Management Bureau (EMB).
Alan Arranguez of EMB-Central Visayas said a CNC was granted to the DOE projects, since these were still exploration activities and do not have significant effects on the environment. For more Philippine news, visit Sun.Star Bacolod.
(January 16, 2008 issue)
GGX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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